President Trump announces 25% tariff on all imported cars ahead of ‘liberation day’
US President Donald Trump has announced a new 25% tariff on all imported cars, threatening UK producers in their largest single export market.
Signing an executive order, Mr Trump said the tax would kick in on 2 April – what he has called “liberation day”.
This is when all his retaliatory import tariffs are supposed to take effect, but they have been delayed before.
The move ratchets up the global trade war Mr Trump himself kicked off at a time when his administration is battling the continued fallout from the Signalgate security breach in Washington.
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Impact of US tariffs on UK industry
Speaking late on Wednesday, Mr Trump said the proposal: “Will continue to spur growth. We’ll effectively be charging a 25% tariff.”
Similar duties on all car part imports are expected to follow in May, complicating the effects as even American car makers source components from around the world – meaning they could also face higher costs and lower sales.
The UK government has signalled it will not retaliate – mirroring its response to the tariffs on steel and aluminium imposed globally by the Trump administration earlier this month.
Chancellor Rachel Reeves condemned the protectionism but told Sky’s Wilfred Frost: “We’re not at the moment in a position where we want to do anything to escalate these trade wars,” in what will be seen as a nod to continuing UK trade deal talks with the US.
But the threat risks a huge impact for the country’s car industry, including manufacturers such as Jaguar Land Rover, Aston Martin and Rolls-Royce.
Official data shows that the US is the UK car sector’s largest single market by country, accounting for £6.4bn worth of car exports in 2023. That is 18.4% of the total.
Listed European car and car parts manufacturers saw further steep declines in their share prices in Thursday trading as the plans drew widespread international criticism.
Canadian Prime Minister Mark Carney called it a “direct attack” on Canadian workers.
Even Trump advisor Elon Musk, the Tesla boss, admitted in a post on his X platform that the hit to his company would be “significant”.
During his second term, Mr Trump has used tariffs frequently as a trade weapon.
Donald Trump announcing the 25% tariff on imported cars.
He cited plans from South Korean car maker Hyundai to build a $5.8bn (£4.5bn) steel plant in Louisiana as evidence the economic measures would bring back manufacturing jobs.
Even American and foreign firms already with domestic plants still rely on Canada, Mexico and other countries for parts and finished vehicles – meaning prices could increase and sales decline as new factories take time to build.
Tariffs are a key part of Mr Trump’s efforts to reshape global trade relations.
He plans to impose what he calls “reciprocal” taxes on 2 April that would match tariffs and sales taxes levied by other nations.
He has already placed a 20% tax on all imports from China.
Similarly, he placed 25% tariffs on Mexico and Canada, with a lower 10% tariff on Canadian energy products in addition to the duties on all steel and aluminium imports, including those from the UK.
Sky News understands the UK government is continuing to engage with the US on a trade deal and remains hopeful an agreement could be made before the tariffs come into force, but may retaliate if deemed necessary at a later date.
Mike Hawes, the chief executive of the UK car industry lobby group the SMMT, said: “Today’s announcement by President Trump is not surprising but, nevertheless, disappointing if, as seems likely, additional tariffs are to apply to UK made cars.
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“The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.
“Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic.
“The industry urges both sides to come together immediately and strike a deal that works for all.”
Police in Tennessee have discovered 14 improvised explosive devices in a man’s home as they were arresting him, the local sheriff’s office said.
Officers were executing a warrant in the home of Kevin Wade O’Neal in Old Fort, about 45 miles (70km) east of Chattanooga, after he had threatened to kill public officials and law enforcement personnel in Polk County.
After arresting the 54-year-old, officers noticed “something smouldering” in the bedroom where he was found.
Kevin Wade O’Neal. Pic: Polk County Sheriff’s Office
On closer inspection, they discovered an improvised explosive device and evacuated the house until bomb squad officers arrived at the scene.
Fourteen devices were found inside the property – none of which detonated.
Improvised explosive devices were found in Kevin Wade O’Neal’s home. Pic: Polk County Sheriff’s Office
Kevin Wade O’Neal’s home in Old Fort, Tennessee. Pic: Polk County Sheriff’s Office
O’Neal was charged with 11 counts of attempted first-degree murder, corresponding to nine officers and two other people inside the property when the suspect tried to detonate the devices.
He also faces 14 counts of prohibited weapons and one count of possession of explosive components.
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O’Neal is being held at the Polk County jail and his bond is yet to be determined.
Donald Trump says he has ordered two nuclear submarines to be positioned in the “appropriate regions” in a row with former Russian president Dmitry Medvedev.
It comes after Mr Medvedev, who is now deputy chair of Russia‘s Security Council, told the US president on Thursday to remember Moscow had Soviet-era nuclear strike capabilities of last resort.
On Friday, Mr Trump wrote on social media: “Based on the highly provocative statements of the Former President of Russia, Dmitry Medvedev, who is now the Deputy Chairman of the Security Council of the Russian Federation, I have ordered two Nuclear Submarines to be positioned in the appropriate regions, just in case these foolish and inflammatory statements are more than just that.
“Words are very important, and can often lead to unintended consequences, I hope this will not be one of those instances. Thank you for your attention to this matter!”
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Trump: ‘We’re going to protect our people’
Speaking outside the White House later in the day, Mr Trump was asked about why he had moved the submarines and replied: “We had to do that. We just have to be careful.
“A threat was made and we didn’t think it was appropriate, so I have to be very careful. So I do that on the basis of safety for our people. A threat was made by a former president of Russia and we’re going to protect our people.”
The spat between Mr Trump and Mr Medvedev came after the US president warned Russia on Tuesday it had “10 days from today” to agree to a ceasefire in Ukraine or face tariffs, along with its oil buyers.
Moscow has shown no sign that it will agree to Mr Trump’s demands.
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On Thursday, Mr Medvedev reminded Mr Trump that Russia possessed a Soviet-era automated nuclear retaliatory system – or “dead hand”.
Mr Medvedev, a close ally of Russian President Vladimir Putin, was referring to a secretive semi-automated Soviet command system designed to launch Russia’s missiles if its leadership was taken out in a decapitating strike.
He made the remarks after Mr Trump told him to “watch his words” after Mr Medvedev said the US president’s threat of hitting Russia and its oil buyers with punitive tariffs was “a game of ultimatums” and added that “each new ultimatum is a threat and a step towards war” between Russia and the US.
Dmitry Medvedev. Pic: Reuters
Mr Medvedev served as Russia’s president from 2008 and 2012, when Mr Putin was barred from seeking a third consecutive term, but then stepped aside to let him run again.
As deputy chair of Russia’s Security Council, he has become known for his provocative and inflammatory statements since Moscow invaded Ukraine in 2022.
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